LUCAS-TVS LIMITEDA JOURNEY TOWARDS MANUFACTURING EXCELLENCE

RAKESH KUMAR 066RAVI RANA 068RICHA TOMAR 070

Mission

To be a respected supplier in the global auto industry, by developing innovative products and solutions of value to customers through creative skills and involvement of employees, suppliers and dealers and use of contemporary technology

Introduction Lucas TVS was established in 1961 as a joint venture between Lucas, UK,

and T V Sundaram Iyengar & Sons (TVS), India to manufacture Automotive Electrical Systems

First plant was set up at Padi (Tamil Nadu) in 1961

Lucas TVS was largest Auto Component Manufacturer in India and operated in various segments like

Passenger carsCommercial VehicleTractorsTwo WheelersStationery and Marine Applications.

Lucas Indian Service was engaged 4th largest component distribution companny in India.

Customers

Other Ownerships and Joint Ventures

LUCAS INDIAN SERVICES:

Sales and services of auto electrical and fuel injection parts.

INDIA NIPPON ELECTRICAL Ltd:

Joint Venture of Lucas India Services and Kokusan Denki Co. Ltd.

INDIA JAPAN LIGHTING Ltd:

50:50 JV of Lucas –TVS and Koto Manufacturing Company Ltd.

Lucas-TVS before 1985.

Plant Layout Process basedCriss-cross Material Movement.Lots Work In Progress on shop floor. Roughly 30% of the processes were not capable of meeting

product specifications.Frequent breakdown of machineries.Less focus on timely delivery (delivery reliability), product

quality (quality consistency)High Scrap levels (3%)

Need for change

Entry of MUL in 1983 increased market competition. Entry of world class manufacturers like Bosch &

Nippondenso triggered a need to change. To remain competitive on price, quality and

response time was a challenge. It became a business requirement to look beyond

India and compete globally.

SWOT ANALYSIS – Pre cellular layoutSTRENGTH

Brand name

One of the India’s largest Independent suppliers

Largest Distributor.

Collaboration with international Companies

Strong Relationship between management & work – force

Indigenous Design.

WEAKNESS High Scrap levels – 3 %

Low Inventory Turns.

Quality Inconsistency

Little emphasis on timely delivery & schedule adherence.

Suppliers were unable to deliver as per company requirements.

OPPORTUNITY

Emerging Indian Automobile market- MUL’s entry was a notable

Significant export opportunities

THREAT Entry of Technologically Advanced competitors like Bosch, Denso.

High competition on price, quality and response time.

Weak Supplier Relationship

Actions taken by Management

Introduction of Systems Approach towards Manufacturing”

Three member Task force formation. Process Layout Product LayoutFocus on maximizing potential of current

resources- Low priority to investments in new technologies

Providing effective training to the workforce.Encouraging employee suggestions through

formation of Small Group Activities(Continuous Improvement).

Outcomes

In six years, net worth and sales/employee of the company doubled with almost negligible change in the work-force size.

Product Layout eliminated criss-crossing of material across the factory Smoother product flow

Reduction in floor space requirement Improved inventory turns. Creation productive and Flexible workforce.

SWOT ANALYSIS – Post cellular layout STRENGTH

Streamlined product flow with no criss-cross movement of materials

Improved productivity through Nagare cell layout and single piece flow

Highly adaptable and multi-skilled workers

Increased number of Kaizens through formation of Small Group Activities

QS 9000 & ISO 9001 Certification acquired

WEAKNESSSuppliers not meeting company quality requirements

Insufficient training to employees.

OPPORTUNITY Greater product range opportunities for NPD.

Economic Liberalization opened window to capture higher market share.

Tap the exports markets.

THREAT • Competition post Liberalization policy.

•Competition on Quality, Cost and Delivery time

• Competing with the Technological capabilities of International auto component manufacturer – Denso, Bosch etc

Achievements Post cellular Layout

NAGARE CELL (Simultaneity of two actions)

Aims to facilitate single piece flow in a mixed model production environment

Greater flexibility- Number of workers can be altered based on demand

Encourages multi-tasking U shape provides the operators easy access to all machines in the cell

JOURNEY

• Focus on getting it right the fist time.• Kaizen suggestions to be encouraged to reduce

number of rejections (PPM).• Investments in technology & machinery.

Quality

• Standardization of products.• New product development & innovation.• Scales of economy.

Costs

• Vendor development & training.• Treating vendors as partners• Developing a network of suppliers

Supplier alignment

• Skill enhancements of the employees.• Competent workforce building.• Developing an environment conducive for

continuous learning.

Training & developm

ent• Developing a Management information system.• Implementing ERP for better control over the

operations.• Use of IT to keep track of the competitor as well as

customers

Information

technology.

Recommendations

THANK YOU!!!